This chapter considers global developments in the digital economy in relation to digital transformation among Commonwealth countries. It defines the digital economy as economic activities enabled by the interaction of digital technologies and physical ICT infrastructure. It discusses the structure of trade in the Commonwealth and how this is changing in the digital economy. It identifies the challenges to digital transformation faced by Commonwealth countries and proposes ways to move forward. It finds that only a few Commonwealth countries have been able to transform and participate in the digital economy, despite digitalisation expanding globally. It suggests that lower-income Commonwealth countries could leverage available digital platforms to increase trade in services.